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Acquisitions, Divestitures, and Business Transformation (Tables)
3 Months Ended
May 31, 2020
Business Combinations [Abstract]  
Components of gain on sale of business and assets held for sale The following table summarizes the net gain recognized in connection with this divestiture:
(in millions)
Cash received from buyer$269.7  
Net assets sold(213.3) 
AOCI reclassification adjustments, primarily foreign currency translation20.9  
Direct costs to sell(3.8) 
Gain on sale of business$73.5  
The carrying value of assets held for sale consist of the following:
May 31,
2020
February 29, 2020
Wine and Spirits
Beer (1)
Wine and SpiritsConsolidated
(in millions)
Assets
Accounts receivable$—  $2.4  $—  $2.4  
Inventories570.2  13.7  576.9  590.6  
Prepaid expenses and other20.0  2.8  32.7  35.5  
Assets held for sale - current590.2  18.9  609.6  628.5  
Property, plant, and equipment115.9  55.9  172.6  228.5  
Goodwill290.6  4.7  304.3  309.0  
Intangible assets375.2  28.2  384.0  412.2  
Equity method investments0.4  —  1.0  1.0  
Other assets26.3  24.8  26.3  51.1  
Less: Reserve for assets held for sale(432.0) (42.7) (407.0) (449.7) 
Assets held for sale376.4  70.9  481.2  552.1  
Liabilities
Accounts payable6.9  0.2  0.6  0.8  
Other accrued expenses and liabilities13.5  11.0  17.8  28.8  
Deferred income taxes and other liabilities—  33.3  —  33.3  
Liabilities held for sale (2)
20.4  44.5  18.4  62.9  
Net assets held for sale$946.2  $45.3  $1,072.4  $1,117.7  
(1)In March 2020, we completed the Ballast Point Divestiture.
(2)Liabilities held for sale are included in the Consolidated Balance Sheets at May 31, 2020, and February 29, 2020, within the respective liability line items noted above.
Components of wine and spirits optimization
We recognized charges in connection with our business transformation strategy which aligns our portfolio with consumer-led premiumization trends within the Wine and Spirits segment as follows:
For the Three Months
Ended May 31,
Results of Operations Location20202019
(in millions)
Loss on inventory write-downsCost of product sold$4.1  $27.2  
Contract termination costsCost of product sold16.9  15.8  
Employee termination costsSelling, general, and administrative expenses(1.3) 11.9  
Other costsSelling, general, and administrative expenses—  6.3  
Impairment of long-lived assetsImpairment of assets held for sale25.0  —  
$44.7  $61.2